Short credit for tds received in assess order - what to do?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 March 2014
Order u/s 143(3) recd yesterday, wherein in the Income Tax Computation Form under Notice of Demand u/s 156, short credit for TDS was granted. There was no discussion on TDS during the course of Assessment.
What is to be done now?
Should an appeal be filed just for short grant of a small amount of TDS?
What is to be done now?
Should an appeal be filed just for short grant of a small amount of TDS?
28 March 2014
psl check assess 26AS for actual TDS amount in our account and what amount granted under assessment.
if amount diff. exit then you can file appeal
if amount diff. exit then you can file appeal
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 March 2014
Yes, there is a difference between 26AS and amount claimed by us in Return of Income due to TDS for which 26AS not received but claimed on the basis of TDS Certificates received.
In such case, should an appeal be filed against the order or Rectification u/s 154 can be filed?
Since it is a mistake apparent from record that TDS Credit for amount claimed as per ROI is not given in the Tax Computation of the Order u/s 143(3) and nothing for denying TDS credit had been mentioned in the Order or discussed during Scrutiny Assessment.
Should an Appeal be filed or Rectification u/s 154 be filed against such short grant of TDS?
In such case, should an appeal be filed against the order or Rectification u/s 154 can be filed?
Since it is a mistake apparent from record that TDS Credit for amount claimed as per ROI is not given in the Tax Computation of the Order u/s 143(3) and nothing for denying TDS credit had been mentioned in the Order or discussed during Scrutiny Assessment.
Should an Appeal be filed or Rectification u/s 154 be filed against such short grant of TDS?
25 July 2025
Great question! When there is a **short credit of TDS in the Assessment Order under section 143(3)**, but:
* The taxpayer has claimed TDS based on valid TDS certificates, and
* The difference is due to TDS credit not reflected in Form 26AS or the Assessment Order computation,
* And no mention or discussion of disallowance of TDS credit during assessment,
then you have two options: **Rectification under Section 154** or **Filing an Appeal**.
---
### What should you do?
#### 1. **Check the Nature of the Mistake:**
* If it is a **mistake apparent from record**, like non-consideration of TDS certificates already submitted and no dispute over TDS amount,
* Then a **Rectification application under Section 154** of the Income Tax Act is appropriate.
**Why Section 154?**
* Section 154 allows correction of any "mistake apparent from the record" in an assessment order.
* Non-credit of TDS is a classic example where rectification is suitable, provided TDS certificates are valid and available.
---
#### 2. **When to file Rectification?**
* File **within 4 years** from the end of the financial year in which the order sought to be amended was passed.
* Attach all necessary proof of TDS certificates and copies of TDS returns (26AS may or may not be updated, but certificates are strong evidence).
---
#### 3. **When to file Appeal?**
* If the TDS credit has been **denied or disputed on valid grounds** (e.g., TDS certificates are doubtful, mismatch in TDS amounts, etc.)
* Or if the mistake is **not apparent** but needs judicial scrutiny.
* Or if Rectification u/s 154 is rejected by the Assessing Officer.
---
### Suggested approach for your case:
* Since the order has **no mention of disallowance or dispute on TDS** and TDS is claimed on certificates, **file Rectification under Section 154** with supporting documents.
* Keep a copy of the application and acknowledge receipt.
* If Rectification is rejected or delayed unreasonably, then file an Appeal before the Commissioner of Income Tax (Appeals).
---
### Additional tips:
* While filing Rectification, clearly mention the difference in TDS, attach certificates, and explain that TDS was claimed and not given credit.
* Also, check your Form 26AS with the department and request correction from deductor or CPC if needed to avoid future mismatches.
---
**In summary:**
* **File Rectification under Section 154** first.
* If not resolved, then consider Appeal.
* Keep documentation of all proofs handy.
* The taxpayer has claimed TDS based on valid TDS certificates, and
* The difference is due to TDS credit not reflected in Form 26AS or the Assessment Order computation,
* And no mention or discussion of disallowance of TDS credit during assessment,
then you have two options: **Rectification under Section 154** or **Filing an Appeal**.
---
### What should you do?
#### 1. **Check the Nature of the Mistake:**
* If it is a **mistake apparent from record**, like non-consideration of TDS certificates already submitted and no dispute over TDS amount,
* Then a **Rectification application under Section 154** of the Income Tax Act is appropriate.
**Why Section 154?**
* Section 154 allows correction of any "mistake apparent from the record" in an assessment order.
* Non-credit of TDS is a classic example where rectification is suitable, provided TDS certificates are valid and available.
---
#### 2. **When to file Rectification?**
* File **within 4 years** from the end of the financial year in which the order sought to be amended was passed.
* Attach all necessary proof of TDS certificates and copies of TDS returns (26AS may or may not be updated, but certificates are strong evidence).
---
#### 3. **When to file Appeal?**
* If the TDS credit has been **denied or disputed on valid grounds** (e.g., TDS certificates are doubtful, mismatch in TDS amounts, etc.)
* Or if the mistake is **not apparent** but needs judicial scrutiny.
* Or if Rectification u/s 154 is rejected by the Assessing Officer.
---
### Suggested approach for your case:
* Since the order has **no mention of disallowance or dispute on TDS** and TDS is claimed on certificates, **file Rectification under Section 154** with supporting documents.
* Keep a copy of the application and acknowledge receipt.
* If Rectification is rejected or delayed unreasonably, then file an Appeal before the Commissioner of Income Tax (Appeals).
---
### Additional tips:
* While filing Rectification, clearly mention the difference in TDS, attach certificates, and explain that TDS was claimed and not given credit.
* Also, check your Form 26AS with the department and request correction from deductor or CPC if needed to avoid future mismatches.
---
**In summary:**
* **File Rectification under Section 154** first.
* If not resolved, then consider Appeal.
* Keep documentation of all proofs handy.
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